Why Should a High-Tech Firm Avoid Selecting Licensing as a Mode

question 86

Multiple Choice

Why should a high-tech firm avoid selecting licensing as a mode of entry?

• A) threat of creating efficient partners
• B) risk of losing control over technology
• C) fear of rapid imitation of core technology
• D) lack of a transitory technological advantage
• E) inability to deter development costs

---

Definitions:

Toroid

A doughnut-shaped component used in magnetic circuits, with a coil of wire wrapped around a ferromagnetic core to concentrate magnetic fields.

Tape-Wound Core

A core made by winding a continuous length of magnetic metal into a spiral.

Metal Sheets

Flat pieces of metal of uniform thickness, produced by rolling or hammering, used in a wide range of manufacturing and construction processes.

Continuous Tape

A long, uninterrupted strip of material, often used for recording or measuring.